GSM drives mobile infrastructure investment

3G demand remained stagnant, while GSM drove mobile infrastructure market in the fourth quarter of 2006, new research has reported.

Dell'Oro Group said that the GSM-based mobility infrastructure market grew 17 per cent sequentially in the fourth quarter of 2006.

GSM was identified as a "critical market" for equipment vendors as the transition from GSM to 3G WCDMA has been slower than expected.

The analyst firm's latest Mobility Infrastructure Quarterly Report noted that the mobile market continues to be dominated by Ericsson and Nokia-Siemens.

"Befitting a large and stagnant market, GSM infrastructure is becoming increasingly concentrated with two vendors accounting for over 70 per cent of the market," said Greg Collins, vice president of mobility infrastructure research at Dell'Oro Group.

"In 2006, Ericsson's share of the GSM market exceeded 40 per cent and Nokia-Siemens' combination accounted for more than 30 per cent of the GSM market."